Marterbauer wants to intensify the fight against fraud

Fitch downgraded Austria's long-term rating from "AA+" to "AA" in June, with a stable outlook. Marterbauer doesn't believe this was related to the EU's excessive deficit procedure, which was already looming at the time. The rating agencies, he says, look at macroeconomic and budgetary developments in detail anyway: "They don't need anyone to point this out to them." Thus, the decision to initiate the excessive deficit procedure had "no effect whatsoever on the financial markets." However, Marterbauer assumes that, given the sharp rise in national debt, Fitch won't be the only agency to downgrade Austria.

The Finance Minister continues to take the excessive deficit procedure itself with a relaxed attitude: "There are absolutely no recommendations or advice for reducing the deficit." He argues that it is more of an "information exchange instrument": "We would have done the same thing with or without the excessive deficit procedure."

Marterbauer is surprised by economic researchers

Marterbauer considers it "realistic" that the deficit target of 4.5 percent of GDP for this year will be met, although its implementation will ultimately depend heavily on economic developments. Economic research institutes even expect a better result, especially the Wifo (Austrian Institute for Economic Research) with 4.1 percent. The Finance Minister considers this an overly optimistic assumption. In March, the Wifo had forecast a 3.3 percent deficit for 2025: "I was very surprised at the time." This was "far from reality."

The minister is hopeful that the large German investment package will boost Austria's economy, which would also help the budget: "The German package will help us greatly, and I believe that the stimulus will begin this year and will be stronger next year." What Berlin is doing is "good policy," as it will benefit both the country and Europe. The finance minister believes that major national economic stimulus measures are currently not feasible. While the austerity package will invest a relatively large amount, "beyond that, we have little room for maneuver because we have to save."

Minister optimistic about domestic demand

Marterbauer is "quite optimistic" about domestic demand: "I already have the impression that consumer demand is stabilizing." The savings rate is already declining. The major problem in this context, he says, is that unemployment remains too high.

Marterbauer aims to raise around 270 million euros in the coming year under the heading of combating fraud. A task force is currently meeting to develop concrete measures. The Finance Minister assumes that action will be taken on two levels. First, legislative measures will be needed. This concerns, for example, the "carousel fraud" in sales tax that is rampant throughout Europe, where Austria intends to make its contribution. On the other hand, more controls will also be needed, and personnel could certainly be redeployed in this direction. Many companies have not been audited at all in recent years. A signal must be sent here.

The Stability Pact, which regulates the extent to which local authorities are permitted to incur debt, is also still in the negotiation process. Marterbauer believes that the "basic message" that everyone must save has been received everywhere: "The difficulty we face is that the starting position is very poor." Therefore, no one wants to be pinned down on anything because they would be held accountable for it. It is clear to the minister that this process should only determine the figures, not the measures surrounding them.

Willingness to discuss property tax

The Association of Municipalities had recently pushed for measures such as an outpatient fee or a higher property tax to be addressed in connection with the Stability Pact. Marterbauer signals flexibility on the latter point. He noted the municipalities' corresponding initiative "with interest": "If municipalities and cities come up with a common model, we are definitely willing to examine it and see how it can be handled."

There was recently a brief skirmish between the business community and the finance minister regarding working in old age. Marterbauer proposed a bonus/malus system that could encourage more older people to be employed. He doesn't want to insist on this. This was not a demand, but a suggestion. Therefore, the minister also doesn't want to link this initiative with the flat tax, which is intended to provide tax benefits for working in retirement: "This is an offensive measure that one of our coalition partners requested, and therefore we will implement it." Of course, the costs and distributional effects will also have to be carefully considered.

The National Council has already approved the partial pension. A corresponding regulation for civil servants is still pending. The union has already raised corresponding demands. Marterbauer is willing to discuss it, but no promises have been made: "We haven't even talked about it yet, but it clearly can't cost more."